Bank's policies slowing US economic and job growth

Discussion in 'Economy' started by kiwiman127, Dec 16, 2011.

  1. kiwiman127
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    kiwiman127 Comfortably Moderate Supporting Member

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    Main Street America is fighting for it's life and it's not getting any help from the banking industry.
    During the housing boom, banks were involved with fraud and predatory lending practices and now they are hindering new business start-ups of small businesses and the expansion of current small businesses. This practice slows any job growth and the economic growth of the US.
    Between 1993 and 2009, 65% of the jobs created were by small businesses. There are claims that regulations are hurting small businesses and maybe that's true. But on the flip side banks are also playing a huge role with the stagnant growth of the US economy and job growth.

    Bank loans to small business fall to 12-year low


    New federal data show that the number of small bank loans to business has fallen to the lowest point in more than a decade, cutting the flow of money to a sector that's usually a job-creation powerhouse.
    "It's usually the smaller business that is more able to bounce back and take advantage of different opportunities faster than a middle-market company," said Linda O'Connell, manager of small business research at Barlow Research Associates, a Minneapolis market research firm that focuses on the financial industries. "We haven't seen that."
    An analysis of recently released Federal Deposit Insurance Corp. data by the Investigative Reporting Workshop shows that overall commercial and industrial lending by banks has increased for five straight quarters, but small loans to business of $1 million or less have been shrinking consistently since June 2008. As of Sept. 30, total outstanding loan volume was down 14.7 percent from its peak.
    <snip>
    The numbers are especially troubling because businesses with fewer than 500 employees created 65 percent of the jobs between 1993 and 2009, according to the Small Business Administration. But in a November survey conducted by the National Federation of Independent Businesses, a small business advocacy group, only 7 percent said the next three months would be a "good time to expand.

    Bottom Line - Bank loans to small business fall to 12-year low
     
  2. Truthmatters
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    Truthmatters BANNED

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    why anyone thinks HUGE megabanks are good for any country is beyond me
     

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